The endowment effect is used to describe the mistake a consumer makes when he accounts for the monetary costs of his decisions but ignores the nonmonetary opportunity costs.
a. true
b. false
b. false
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If Y = $200 billion, c = 0.75, autonomous consumption = $10 billion, and T = $20 billion, induced consumption expenditure is
A) $135 billion. B) $200 billion. C) $180 billion. D) $150 billion.
Economists are trained to be as:
A. subjective as they can be. B. opinionated as they can be. C. deconstructionist as they can be. D. objective as they can be.
The direct relationship between changes in price and changes in quantity supplied is
A. a change in supply. B. the law of supply. C. shown by a shift in the supply curve. D. the law of relative production.
Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.
Figure 18.1Refer to Figure 18.1. Suppose that the Lorenz curve ________. This would mean that the distribution of income is equal.
A. was above the 45-degree line OB B. was perfectly vertical C. was below the 45-degree line OB D. was the same as the 45-degree line OB